tag:blogger.com,1999:blog-5430866.post6901791465521004396..comments2024-01-02T08:54:14.406-05:00Comments on Peter Bromberg's UnBlog: What's Different About "This" Recession?peterbromberghttp://www.blogger.com/profile/18173639411723574123noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-5430866.post-73613934909284796082011-10-10T08:36:26.005-05:002011-10-10T08:36:26.005-05:00Excellent article however as a point of fact Defla...Excellent article however as a point of fact Deflation is the natural state of a truly capitalist system.<br /><br />i.e. the technology sector.<br />i.e. Laser eye surgery<br />i.e. the 1870s which most modern economists think of as a depression, but wasn't because the purchasing power of every American went, up, the price of goods went down, and real wages went up. (and the dollar appreciated versus gold as thus was worth more). In fact the 1870s were a time of unparalleled growth in prosperity. <br /><br />But of course Keynesians won't look at it that way because it disproves their entire theory and proves the Austrian viewpoint.<br /><br />The problem is Say's Law. That is wrong production. Our economy massively is producing things that people don't want. Be it houses, or banks or even desktop computers. In the case of houses and banks the wrong production is because of government interference. In the case of desktop computers it is a normal shift from one technology to another that isn't really harming the economy. More to the point, people are so in debit that the only thing that they want to spend their money on is getting out of debit, so almost everything is wrong production because savings is more important right now. Which of course is the right thing to have happen!<br /><br />But make no mistake, this depression we're still! in is caused by wrong production, not as Keynesians would lead you to believe lack of spending. But then all recessions/depressions are the result of wrong production and not lack of spending. If produce things that people want, they will buy them.<br /><br />If you are more productive (i.e. efficient) you will get wealthier, both the business owner and the employees that produce more in the same amount of time. Production is how wealth is created, not money printing and government hand outs. Those just destroy the productive class.<br /><br />Let's reset and truly understand economics. The left has economics completely backwards and it's killing this country.James Hancockhttps://www.blogger.com/profile/00691491559386497208noreply@blogger.com